THE Australian Medical Association has dropped its opposition to a scheme that would shine a light on how much doctors are paid by pharmaceutical companies.

While the lobby group has previously emphasised concerns disclosure could harm the reputation of doctors, president Steve Hambleton on Monday said the AMA supported increased disclosure of financial relationships between practitioners and companies.

''I've asked the AMA ethics committee to have another look at the issue and they did. They basically came back and said look we should not oppose increased disclosure but we have got to work out that what is disclosed is actually helpful to patients,'' he said.

Dr Hambleton said reports of overseas doctors receiving hundreds of thousands of dollars from companies in the US had made the AMA fear that continued secrecy could undermine confidence in the integrity of doctors here.

''We're on the pathway to transparency, it's really a matter of working out an appropriate mechanism,'' he said.

Dr Hambleton's comments come as a federal parliamentary committee considers a new bill that would make pharmaceutical companies detail how much they are paying doctors for work. The bill would also limit gifts and hospitality, forbid payment for doctors to travel or attend educational meetings domestically and overseas and ban company sponsorship of such events outside of Australia.

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Greens health spokesman Dr Richard Di Natale, who introduced the bill to the Senate, said he was now considering expanding the bill to all health professionals and companies other than drug companies.

While most pharmaceutical companies oppose the bill and prefer self-regulation, some doctors have individually written submissions in support of the inquiry.

Melbourne cancer specialist Dr Ian Haines said during his 30 years as an oncologist, he had observed the increasing influence of companies on ''educating'' doctors.

''It has reached a point now where a new culture of entitlement has developed amongst the medical profession, and most worryingly amongst the younger generation,'' he said, adding that it was ''eroding the independence and integrity of the profession and adding large and often unnecessary costs to our health budget''.

Dr Haines, an Adjunct Clinical Associate Professor at Monash University, said that while close relations between doctors and pharmaceutical companies can be very beneficial, their dealings must be open and transparent.